Inflation slowed sharply to 7.1% but stayed high in November as gas prices fell, CPI report shows

Inflation throttled back significantly for a second month in November but remained elevated as goods prices that surged during the pandemic continued to dip. But the cost of services kept marching higher.

Consumer prices increased 7.1% from a year ago, down from a 7.7% advance in October and a 40-year high of 9.1% in June, as rising food and rent costs again offset declining gas prices, according to the Labor Department’s Consumer Price Index.

Economists surveyed by Bloomberg expected yearly inflation to dial back to 7.3%. 

On a monthly basis, consumer prices increased just 0.1% following a 0.4% rise the prior month. 

Core prices, which exclude volatile food and energy items and better reflect underlying trends, increased 0.2% from October following a 0.3% bump the previous month. That lowered the annual increase from 6.3% to 6%.